“Through Central Bank of Kenya, FRC [the Financial Reporting Centre] and other government agencies, the government has continued to monitor financial institution and detect any suspicious financial transaction and financial malpractice,” he said in his draft 2021 Budget Policy Statement (BPS).
“Early detection of such major corporate scandal has elicited early intervention that has avoided some financial institutions from collapse.”
He did not mention the firms whose viability was threatened and neither did he expound on the crimes perpetrated by the insiders. Most of the historical bank failures have been due to a mix of fraud, political interference, excessive risk-taking and inadequate capital.
https://www.businessdailyafrica.com/bd/economy/how-state-averted-fresh-wave-of-bank-collapses-3269120For saccos it is a matter of when they will start surrendering.
Latest Central Bank of Kenya report that sheds light on the health of financial sector shows that non-performing loans (NPLs) ratio for deposit-taking (DT) Saccos jumped from last year’s 6.15 percent to 9.12 percent in June 2020—the highest since 2012 when it was at 9.6 percent.
Gross loans stood at Sh426.4 billion, meaning that the value of NPLs at the end of June was Sh38.89 billion in contrast with Sh25.79 billion at the end of December 2019. The June figure means that about Sh91.20 of every Sh1,000 loaned out is likely to be lost, putting at risk the stability of the Sacco sector.
https://www.businessdailyafrica.com/bd/corporate/companies/sacco-bad-loans-l-recorded-a-decade-ago-3241884https://www.businessdailyafrica.com/bd/markets/capital-markets/saccos-want-defaulters-forced-to-pay-3263516
Topic: Banks Book Cooking starting to stink; Saccos going burst (Read 2825 times)